Panic Mode Valuations

Russia is now in full panic mode. The stock exchange is closed today.
Sweden has fallen from 1300+ down to the 700-numbers now, close to panic.
The US has not yet seen this dramatic of drops, it will come.

This article (in Swedish) appeared today about valuations of Russian companies.
There are several Swedish holding companies just holding Russian assets.

Valuations are way way way below book. They are below scrap. And they are even below cash in the companies. You can buy cash at a discount.

Question is then how low it can fall. Well if it can fall this far it is already below rational values, so there is really no reason why it can not fall further.
The selling today is driven by panic, margin calls and institutional investors moving money home.

At some point the panic will ease back to normality.
As we have fully been expecting the current panic we are more thinking about how it will end.
Greed will eventually be back, it is still part of human nature.
At some point it will be time to buy. This might be at the peaking of the current panic.
It is too soon to enter now, but we are following this closely.

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